Extends research and development tax incentive
23 Feb 2023
The Minister of Finance announced on 22 February 2023 that the Section 11D research and development (R&D) tax incentive, providing for a 150% deduction for qualifying expenditure on eligible scientific or technological R&D undertaken by companies in South Africa, will be extended for another 10 years until 31 December 2033. In addition, a grace period will be introduced to allow taxpayers to claim qualifying expenditure incurred up to six months. Previously only expenses incurred from the date of submission of the application could be claimed. Further, the definition of R&D will be simplified to enable easier administration and clear understanding. Finally, the prohibition on R&D related to internal business processes will be deleted.
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Type:
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Treatment and operation (Corporate taxation)
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Promotion and facilitation (Investment incentives)
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Industry:
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Services (Scientific research and development, Other professional, scientific and technical activities)
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Sources:
